AirTouch Plan to Buy a Unit
Of U S West Is Jeopardized

AirTouch Communications Inc. plans to acquire U S West Inc.'s wireless business in a stock transaction valued at $2.3 billion, but a new federal tax proposal already jeopardizes the deal.

The proposed transaction, under which AirTouch also plans to assume about $2.2 billion in debt held by U S West, would complete a process that began in 1994, when AirTouch and the Baby Bell pooled their wireless operations and formed a joint venture that was 70% owned by AirTouch and 30% owned by U S West Media Group , U S West's publicly...